An update to Sage Fixed Assets 2020.1 is now available.
You should download this update if any of the following situations apply to you.
- Have or will place a Property Type T (light truck or van) asset in service during 2019 or in 2020.
- Have or will place a Property Type A (automobile) asset in service during 2019 or in 2020.
- Have placed a Property Type Q sport utility vehicle (SUV) asset in service during 2019 and have taken Section 179 on it.
- Have placed assets in service with a total Acquired Value that puts you near the 179 Threshold Amount for 2019.
- Use the CPA Accounting GL Link.
The Tax Cuts and Job Act of 2017 (TCJA) changed the factors and how the calculation of the limits for Autos, Light Trucks, Vans and Section 179 are done for years 2019 and later. Sage Fixed Assets Update 2020.1.1 provides adjustments to address these changes in the limit calculations as well as restoring the CPA Accounting GL Link.
Another change under the TCJA: Light Trucks and Vans and Luxury Automobiles now share the same depreciation limits. For example, the annual depreciation limits for both Property Type A and Type T are now the same (e.g. $18,100 first year limit in 2019 and 2020, when claiming Bonus depreciation). Going forward we will refer to all passenger vehicles collectively as Luxury Vehicles.
Prior to the 2020.1.1 update, the depreciation limits for vehicles placed in service in 2019 and 2020 have the following differences in Sage Fixed Assets as compared to the IRS amounts. These variances are the same whether or not the 168 Allowance is taken.
- Property Type T, the depreciation limits are $100 lower for years 1, 2 and 3.
- Property Type A, the depreciation limits are $100 higher for year 2 and for years 4 and later.
To continue to allow tracking vehicles by type, Sage Fixed Assets is retaining Property Type T.
For more information about updating the Luxury Vehicle limits for assets already placed in service, see KB ID: 103556 How to Recalculate Depreciation Limits for Luxury Vehicles.
For 2019, the Property Type Q Section 179 limit for SUVs in Sage Fixed Assets has been reduced by $100 and the 179 Threshold Amount has been reduced by $10,000. These amounts now tie to 2019 IRS Section 179 published limits of $25,500 for an SUV and $2,550,000 for the Threshold Amount of property placed-in-service during the year.
The 2019 Section 179 limit change for an SUV can be accomplished by manually entering $25,500 as the maximum Section 179 Deduction. The Audit Advisor also can be run to check for Section 179 deductions taken in excess of the limit or to check if there is a limitation due to the acquired value of assets placed in service in 2019 exceeding the Section 179 Threshold Amount. To update your Form 4562 without applying this update, see KB ID:103504 4562 Form shows incorrect Max Threshold Cost for Section 179.
CPA Accounting GL Link
To streamline the Links menu, we underestimated the demand for the CPA Accounting link and removed it. We are restoring the CPA Accounting link in the 2020.1.1 update to all versions that had previously offered this feature.
You will be able to set it as a Favorite Link again in Preferences and also find it in the same place as in the past using the top menu: Links > Depreciation Links > CPA Accounting
See KB ID: 103589 Download 2020.1.1 Sage Fixed Assets Update to update your software today.